Angiotech Pharmaceuticals, Inc. Announces Commencement of Proceedings by Rex Medical LP

Angiotech Pharmaceuticals, Inc. ("Angiotech" or the "Company") today announced that Rex Medical LP ("Rex") has initiated arbitration and court proceedings against Angiotech Pharmaceuticals, (US), Inc. ("Angiotech US") with respect to the parties' respective rights and obligations under the License, Supply, Marketing and Distribution Agreement between Angiotech US and Rex, dated March 13, 2008 (as amended, the "Agreement").

Subsequent to various business discussions between the parties, Angiotech determined its need to deliver a notice to Rex, which stated Angiotech's determination that in light of the Company's recent and substantially changed business, operating and liquidity conditions, it would not be commercially reasonable for Angiotech to continue with the existing structure of the Agreement. Subsequent to its receipt of said notice, Rex commenced arbitration proceedings in which it alleges that Angiotech wrongfully terminated the Agreement and are seeking monetary damages in excess of $3 million as well as costs, fees and expenses in connection with the arbitration proceeding.

In addition to the arbitration proceedings, Rex has initiated an action in the United States District Court for the Southern District of New York, entitled Rex Medical, LP v. Angiotech Pharmaceuticals (US), Inc., 1:10-cv-08746-CM (the "Federal Injunction Litigation"). The Petition in the Federal Injunction Litigation seeks temporary and preliminary injunctive relief in aid of the arbitration. Over Angiotech's objection, Rex has been granted a temporary restraining order requiring Angiotech to continue performing under the Agreement pending the Court's consideration of Rex's petition for a preliminary injunction in aid of the arbitration. The Court is scheduled to hear arguments on Monday, November 29, 2010 at 10:00 a.m. with respect to a preliminary injunction.

Given the early stages of these proceedings, it is not possible at this time to predict the outcome of the Federal Injunction Litigation or the arbitration. The Company intends to vigorously defend both the Federal Injunction Litigation and the arbitration.

ANGIOTECH PHARMACEUTICALS, INC. ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2010

Angiotech Pharmaceuticals, Inc. today announced that it had released its financial results for the third quarter ended September 30, 2010.

In addition, Angiotech also announced today that it had entered into an updated and amended credit facility and Forbearance Agreement with Wells Fargo Capital Finance, LLC ("Wells Fargo"). The updated and amended credit facility will provide us with up to $35 million of liquidity, with the applicable interest rate and other material terms being consistent with our current credit facility with Wells Fargo, except that the updated and amended credit facility is expected to increase our borrowing base, thereby assuring us immediate access to approximately $25 million under the facility, and provides for amended levels of material financial covenants. The Amended and Restated Forbearance Agreement provides for the credit facility to be available under the amended terms through the earlier of April 30, 2011 or the completion of our previously announced recapitalization transaction, subject to certain terms and conditions described in more detail below.

"We are pleased to report our highest ever third quarter product sales, driven primarily by continued growth in sales of our Proprietary Medical Products and continued stability and improvement across all segments of our Base Medical Products business," said Dr. William Hunter, President and CEO of Angiotech. "Our innovations, in particular our proprietary Quill™ Knotless Tissue-Closure Device franchise, combined with the tremendous efforts of our people, have continued to produce satisfying results, even as we continue to address the challenges posed by declining royalties received from our partner Boston Scientific."

Third Quarter Financial Highlights

Total revenue was $59.0 million.

Net product sales were $51.9 million. Sales of our Proprietary Medical Products were $17.3 million, or 33% of total product sales. Sales of our Base Medical Products were $34.6 million, or 67% of total product sales.

Royalty revenue was $7.1 million.

Research and development expenses were $6.2 million.

Selling, general and administrative expenses were $22.5 million.

Net loss and net loss per share were $18.5 million and $0.22, respectively.

As of September 30, 2010, cash and short-term investments were $31.3 million and net debt was $543.7 million.

Monday's Movers In Healthcare: Angiotech Pharmaceuticals, Inc. (NASDAQ:ANPI), Arena Pharmaceuticals Inc. (NASDAQ:ARNA), Chindex Intl. (NASDAQ:CHDX), I

U.S. stocks traded much lower for most of the day on Monday before staging a late rally that saw the Dow barely close above water. A late round of heavy buying in financials still saw small-caps broadly finish the sessions lower. Nearly every sector in the Standard & Poor's SmallCap 600 ended to the downside, paced by energy and materials stocks.

Even as health care reform looms, the basket of healthcare stocks is still not done attempting to reach for higher highs. The US spends $2 trillion annually on healthcare, or 18% of the gross domestic product. And it could reach 34% by 2040, according to a White House report issued last week. Is there still any doubt that the BioMed stock sector is where the action is? What volatility! Certainly, while most of the market was down, many still found action in Monday's Medical Movers.

Angiotech Pharmaceuticals, Inc. (NASDAQ:ANPI)(TSX:ANP) announced that the U.S. Food and Drug Administration (FDA) had granted 510(k) clearance for the Option Inferior Vena Cava (IVC) Filter in the United States. News about the company's implantable device to prevent pulmonary embolism sent its shares up 39.41% on Monday. The device will be sold in the United States for use in both permanent and retrievable indications. Pulmonary embolism occurs when there is a sudden blockage in a lung artery.

Coming in behind them were shares of Arena Pharmaceuticals Inc. (NASDAQ:ARNA) which climbed Monday after the company said its obesity drug candidate lorcaserin helped patients lose and keep off weight in a clinical trial. Arena said patients who took lorcaserin had "highly significant" weight loss in their first year, and they were more likely to maintain the weight loss in their second year than those who took a placebo. The company, which announced the results at the American Diabetes Association conference in New Orleans, said lorcaserin patients fared better in terms of cardiovascular risk, and the drug was not associated with heart valve problems or depression.

Roundig out the top 3 was Chindex Intl. (NASDAQ:CHDX) which has been climbing steadily from its $3.50 lows in mid-march. In China, the company provides Western health-care goods and investors feel that as China's economy grows, so too shall Chindex. We'll have to keep an eye on that stock to see if they're right.

On the flip side, shares of Incyte Corporation (Nasdaq:INCY) lost a little steam after climbing steadily on Friday in anticipation of Incyte's presentation of clinical results for its Phase IIb trial of INCB13739, an orally bioavailable inhibitor of the enzyme 11beta-hydroxysteroid dehydrogenase type 1 (11beta-HSD1), at the American Diabetes Association (ADA) 69th Scientific Sessions being held in New Orleans. The results from this double-blind, placebo-controlled Phase IIb trial involving over 300 patients with type 2 diabetes showed that treatment with once-daily doses of INCB13739 significantly improved glycemic control, but investors chose to sell on news after buying on rumor.

Meanwhile, Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX) announced that its collaborator, Ono Pharmaceutical Co., Ltd. in Osaka, Japan, has begun clinical testing in Japan of RELISTOR(R) (methylnaltrexone bromide) subcutaneous injection, the first-in-class medicine approved in the U.S., Canada, the European Union, Australia and Latin American countries for the treatment of opioid-induced constipation. So after starting the day on that news up at $5.75 why the dip? Well, on the same day, Progenics announced the discontinuation of development for PRO 206, a pre-clinical compound for the treatment of hepatitis C virus (HCV) infection, in line with its ongoing initiative to allocate resources to the most important programs in order to increase operating efficiencies, and that it will instead focus on its second-generation HCV-entry inhibitor portfolio, anticipating selection of a new development candidate in 2010.

Beacon Equity Issues Stock Alerts on Leading Pharmaceutical Giants

DALLAS, - BeaconEquity.com announces availability of alerts on pharmaceutical companies poised to wrap up the week with heavy trading. The alerts include recent news, trading activity and technical analysis.

Investors can view all of the daily stock alerts for free by visiting BeaconEquity.com/m.

Today's Stock Alerts include: Angiotech Pharmaceuticals Inc. (Nasdaq: ANPI), Angiotech Pharmaceuticals Inc. (Nasdaq: PPHM), Biogen Idec Inc. (Nasdaq: BIIB), Genzyme Corp. (Nasdaq: GENZ), Celgene Corp. (Nasdaq: CELG) and Gilead Sciences Inc. (Nasdaq: GILD).

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